Pound Hits Two-Month Low as Fed Turns Hawkish, UK Inflation Softens
GBP/USD traded at $1.3223 on June 22, down 1.5% for the week, after the Federal Reserve shifted to a hawkish stance while softer UK inflation and Bank of England caution weighed on Sterling.
The British pound fell 1.5% against the US dollar last week, trading at $1.3223 on June 22, marking a two-month low for the currency pair as the Federal Reserve shifted to a more hawkish policy stance and UK economic data weakened.
The decline reflects diverging monetary policy trajectories between the two central banks. The Federal Reserve's hawkish turn boosted the US dollar across global currency markets, while the Bank of England maintained a cautious approach following softer-than-expected UK inflation readings. Renewed political uncertainty in the UK added further pressure on Sterling during the week.
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